Published: Saturday, June 29, 2013 at 6:30 a.m.

Last Modified: Friday, June 28, 2013 at 8:45 p.m.

July marks five years since the County Commission launched what today is recognizable as its economic development program.

What began in 2008 with a $550,000 payment to help bring to Ocala a Pensacola-based high-tech research outfit has grown by nearly nine times that amount.

Over the past five years, the board has awarded $4.5 million in incentives to help new start-ups as well as the elite of the Fortune 500. That amount does not include another $601,240 that commissioners allotted to certain companies but then reeled back in after those companies failed to meet performance provisions in their grants.

But county officials in the coming budget year have slowed the infusion of new money into the program, choosing to live largely off reserves during 2014.

The choice was made to go that route, the county's economic consultant says, largely because the County Commission seeks to close a budget gap with an array of spending cuts rather than retreat from its publicly stated opposition to tax hikes in next year's budget.

The Institute for Human and Machine Cognition, or IHMC, was the first recipient of the county's economic development program, known as the Economic Development Financial Incentive Grant fund, or EDFIG.

Prompted largely by the lobbying of Commissioner Stan McClain, the Panhandle biotech firm that's done work for NASA and the Pentagon took up residence in the former library headquarters in downtown Ocala.

The most recent audit by county Internal Auditor Wallace Watford shows IHMC has largely met the provisions of its agreement.

IHMC has created 10 full-time jobs paying a yearly salary averaging $100,000 well in advance of the April 2014 target date. The company has until April 2015 to add five more jobs at that salary.

Since the grants can extend over several years, or in some cases the company has yet to launch its project, the jury is still out on the results of other efforts.

And not all grants have been as fruitful as IHMC's.

The board has rescinded a half-dozen grants for various reasons, including following the state's lead to pull the funding back for failing to comply and because the projects simply never got off the ground.

What is clear, however, is that the county's two programs have picked up momentum over time.

Besides the EDFIG, the county also offers assistance for infrastructure improvements with a wider public benefit through the Economic Development Incentive Grant program, or EDIG.

The County Commission has approved 13 of the 25 total awards made since July 2008 within the past 18 months, records show. (Some companies got multiple grants for the same project.)

But headed into 2014, Marion County's proposed budget shows $320,000 in fresh dollars for EDFIG, and $150,000 for EDIG. That's down from $700,000 and $500,000, respectively, from a year ago.

Rick Michael, the county's consultant and former director of its economic development office, said the county intends to meet the funding target set for each last year.

That will be done by tapping unspent funds from this year.

Currently, Michael said, the EDFIG program still has about $432,000, and no prospects are on the horizon to siphon off some of that before the fiscal year expires on Sept. 30.

Michael added that the account will even receive a $15,000 boost next month.

Commissioners will be asked to strip Atheros of part of its previous grant after the state did likewise a few months ago, Michael said.

Michael noted that the telecommunications company has complied with its jobs requirement, but its grant was still rescinded in Tallahassee because Atheros did not submit required paperwork in accordance with the terms of its deal.

The EDIG fund, meanwhile, now contains about $232,000, Michael said.

Michael believes the two programs will be “sufficiently replenished” during budget hearings that begin in a couple of weeks to meet the total of $1.2 million.

Yet activity during this fiscal year illustrates a dilemma in promoting economic development.

For example, the county entered the current fiscal year with just over $1 million in its EDFIG program.

That happened after commissioners voided a $300,000 grant to American Fresh Farms last September.

That was added back into the budget just before the start of the fiscal year after the company's plan to launch a hydroponic tomato growing operation at Ocala International Airport never materialized.

So, the county essentially has doled out about $600,000 this year, meaning the tank would be close to empty without the cancellation of American Fresh Farms.

Michael also pointed out that two pending projects could drain the EDIG of $150,000 to $200,000 before the end of the fiscal year, leaving it with less than 20 percent of its beginning funding.

If those projects proceed as expected, he predicted the commission would have to make budget “adjustments” to bring the EDIG's funding up to the desired level.

Michael added that he's confident the county has the resources to meet the needs of prospective employers — or could pull together money if a major project, such as Amazon, which is seeking a location in Florida for a massive distribution center, came calling.

The board did so, for instance, in amassing more than $13 million for road construction to accommodate the Ocala-Marion County Commerce Park on the city's north end.

“Seldom are you going to spend the full amount,” Michael said.

“Over the past three years, we have not gone to a zero balance,” he added. “We're at sufficient levels to meet current needs.”

<p>July marks five years since the County Commission launched what today is recognizable as its economic development program.</p><p>What began in 2008 with a $550,000 payment to help bring to Ocala a Pensacola-based high-tech research outfit has grown by nearly nine times that amount.</p><p>Over the past five years, the board has awarded $4.5 million in incentives to help new start-ups as well as the elite of the Fortune 500. That amount does not include another $601,240 that commissioners allotted to certain companies but then reeled back in after those companies failed to meet performance provisions in their grants.</p><p>But county officials in the coming budget year have slowed the infusion of new money into the program, choosing to live largely off reserves during 2014.</p><p>The choice was made to go that route, the county's economic consultant says, largely because the County Commission seeks to close a budget gap with an array of spending cuts rather than retreat from its publicly stated opposition to tax hikes in next year's budget.</p><p>The Institute for Human and Machine Cognition, or IHMC, was the first recipient of the county's economic development program, known as the Economic Development Financial Incentive Grant fund, or EDFIG.</p><p>Prompted largely by the lobbying of Commissioner Stan McClain, the Panhandle biotech firm that's done work for NASA and the Pentagon took up residence in the former library headquarters in downtown Ocala.</p><p>The most recent audit by county Internal Auditor Wallace Watford shows IHMC has largely met the provisions of its agreement.</p><p>IHMC has created 10 full-time jobs paying a yearly salary averaging $100,000 well in advance of the April 2014 target date. The company has until April 2015 to add five more jobs at that salary.</p><p>Since the grants can extend over several years, or in some cases the company has yet to launch its project, the jury is still out on the results of other efforts.</p><p>And not all grants have been as fruitful as IHMC's.</p><p>The board has rescinded a half-dozen grants for various reasons, including following the state's lead to pull the funding back for failing to comply and because the projects simply never got off the ground.</p><p>What is clear, however, is that the county's two programs have picked up momentum over time.</p><p>Besides the EDFIG, the county also offers assistance for infrastructure improvements with a wider public benefit through the Economic Development Incentive Grant program, or EDIG.</p><p>The County Commission has approved 13 of the 25 total awards made since July 2008 within the past 18 months, records show. (Some companies got multiple grants for the same project.)</p><p>But headed into 2014, Marion County's proposed budget shows $320,000 in fresh dollars for EDFIG, and $150,000 for EDIG. That's down from $700,000 and $500,000, respectively, from a year ago.</p><p>Rick Michael, the county's consultant and former director of its economic development office, said the county intends to meet the funding target set for each last year.</p><p>That will be done by tapping unspent funds from this year.</p><p>Currently, Michael said, the EDFIG program still has about $432,000, and no prospects are on the horizon to siphon off some of that before the fiscal year expires on Sept. 30.</p><p>Michael added that the account will even receive a $15,000 boost next month.</p><p>Commissioners will be asked to strip Atheros of part of its previous grant after the state did likewise a few months ago, Michael said.</p><p>Michael noted that the telecommunications company has complied with its jobs requirement, but its grant was still rescinded in Tallahassee because Atheros did not submit required paperwork in accordance with the terms of its deal.</p><p>The EDIG fund, meanwhile, now contains about $232,000, Michael said.</p><p>Michael believes the two programs will be “sufficiently replenished” during budget hearings that begin in a couple of weeks to meet the total of $1.2 million.</p><p>Yet activity during this fiscal year illustrates a dilemma in promoting economic development.</p><p>For example, the county entered the current fiscal year with just over $1 million in its EDFIG program.</p><p>That happened after commissioners voided a $300,000 grant to American Fresh Farms last September.</p><p>That was added back into the budget just before the start of the fiscal year after the company's plan to launch a hydroponic tomato growing operation at Ocala International Airport never materialized.</p><p>So, the county essentially has doled out about $600,000 this year, meaning the tank would be close to empty without the cancellation of American Fresh Farms.</p><p>Michael also pointed out that two pending projects could drain the EDIG of $150,000 to $200,000 before the end of the fiscal year, leaving it with less than 20 percent of its beginning funding.</p><p>If those projects proceed as expected, he predicted the commission would have to make budget “adjustments” to bring the EDIG's funding up to the desired level.</p><p>Michael added that he's confident the county has the resources to meet the needs of prospective employers — or could pull together money if a major project, such as Amazon, which is seeking a location in Florida for a massive distribution center, came calling.</p><p>The board did so, for instance, in amassing more than $13 million for road construction to accommodate the Ocala-Marion County Commerce Park on the city's north end.</p><p>“Seldom are you going to spend the full amount,” Michael said.</p><p>“Over the past three years, we have not gone to a zero balance,” he added. “We're at sufficient levels to meet current needs.”</p><p><i>Contact Bill Thompson at 867-4117 or bill.thompson@starbanner.com</i></p>